Union Budget 2024: Sitharaman Introduces Sweeping Changes and Sets New Milestones
Finance Minister Nirmala Sitharaman today presented the Union Budget 2024-25, making history with her seventh consecutive Budget speech. She becomes the first finance minister to achieve this milestone, surpassing the previous record held by former Prime Minister Morarji Desai, who presented six consecutive budgets from 1959 to 1964.
Major Announcements:
Tax Reforms:
Sitharaman announced increased standard deductions and revised tax rates for salaried individuals under the new tax regime:
Income up to ₹3 lakh: Nil
Income from ₹3-7 lakh: 5%
Income from ₹7-10 lakh: 10%
Income from ₹10-12 lakh: 15%
Income from ₹12-15 lakh: 20%
Income above ₹15 lakh: 30%
Additionally, customs duties on gold, silver, mobile phones, and other goods were revised.
Fiscal Policies:
The Centre’s capital expenditure for FY25 is set at ₹11.1 lakh crore, consistent with the Interim Budget, with infrastructure spending at 3.4% of GDP.
Employment and Skilling:
Five schemes focusing on 4.1 crore youth over five years with a central outlay of ₹2 lakh crore.
A comprehensive internship scheme for one crore youth in top companies over five years.
Employment-linked incentives, including one month’s wage support for first-time employees.
Women-specific skilling programs to increase workforce participation.
MSME and Manufacturing Support:
Emphasis on MSMEs and the manufacturing sector.
Introduction of a credit guarantee scheme and term loans for machinery purchase.
Launch of a technology support package for MSMEs.
SIDBI to open 24 new branches to serve MSME clusters.
Financial Initiatives:
Increase in the Mudra loan limit from ₹10 lakh to ₹20 lakh for previous borrowers.
Financial support for higher education loans up to ₹10 lakh in domestic institutions.
Implementation of an integrated technology system for the Insolvency and Bankruptcy Code (IBC).
Agriculture and Rural Development:
Allocation of ₹2.66 lakh crore for rural development.
Transformation of agricultural research to focus on productivity and climate-resilient crop varieties.
Initiative to introduce one crore farmers to natural farming over two years.
Infrastructure and Regional Development:
Proposal for rental housing in PPP mode for industrial workers.
Special financial support of ₹15,000 crore for Andhra Pradesh.
Development of new airports, medical facilities, and sports infrastructure in Bihar.
Economic Outlook:
Inflation targeting 4%.
India’s economic growth termed a “shining exception,” with a focus on job creation and boosting consumption, benefiting sectors like consumer goods, real estate, and automobiles.
Priority Areas:
The Budget highlights nine priority areas: Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation and R&D, and Next Generation Reforms.
Women-Led Development:
Over ₹3 lakh crore allocated for schemes benefiting women and girls.
Social Welfare:
Extension of the PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) for five years, benefiting over 80 crore people.
Digital and Technological Advancements:
Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance is a key initiative.
With this comprehensive Union Budget 2024, Finance Minister Nirmala Sitharaman aims to propel India’s growth, enhance employment opportunities, and ensure inclusive development across various sectors, setting the stage for a robust and resilient economy.
